New €13B logistics giant emerges in Europe

The transaction ranks among the largest deals completed in the European logistics real estate sector in recent years and is expected to accelerate industry consolidation, increasing competitive pressure on other major European players such as SEGRO, CTP, Prologis Europe, and Montea.

The agreement provides for a friendly merger conducted exclusively through a share exchange, creating a company with a gross property value exceeding €13 billion, more than 13 million square metres of warehouse space, annual rental income of over €700 million, and a presence across eight European markets. With these metrics, the new group will become the largest listed owner of logistics real estate in Western Europe and rank among the continent’s three leading players.

The timing is no coincidence. In recent years, Europe’s supply chain has been reshaped as manufacturing moves closer to consumer markets, e-commerce continues to expand, and multinational companies increasingly seek a single partner capable of serving them across multiple countries. In this environment, scale has become a key competitive advantage, making the creation of pan-European platforms almost inevitable.

France represents the strategic focal point of the transaction. Through the integration of ARGAN, WDP will acquire a fully integrated French platform valued at approximately €5 billion, combining ARGAN’s strong local network, long-standing customer relationships, and development expertise with WDP’s financial strength and international footprint. For the Belgian group, France will become the geographical link between Northern and Southern Europe while providing a platform for further expansion into Italy and Spain.

The transaction terms are particularly attractive for ARGAN shareholders. For each ARGAN share, shareholders will receive three newly issued WDP shares, while an extraordinary dividend of €11 per share will be distributed prior to the completion of the merger. Based on WDP’s share price as of 23 July, ARGAN is valued at €79.22 per share, representing a premium of approximately 21% over its market price and nearly 30% above its average share price over the previous three months.

Management expects the merger to generate immediate shareholder value. For WDP, the transaction is projected to deliver a 3% increase in EPRA earnings per share from the first full year of operations, a 7% increase in EPRA Net Tangible Assets (EPRA NTA), and an overall accounting return more than 10% higher. ARGAN shareholders, meanwhile, are expected to benefit from higher dividends, improved liquidity of their investment, and participation in a significantly larger European real estate group.

The growth potential of the combined entity is considered equally significant. ARGAN owns an undeveloped land bank of approximately 750,000 square metres, which can now be developed at a much faster pace thanks to the new group’s annual self-financing capacity of around €700 million. In addition, annual synergies of approximately €10 million are expected within the first year, primarily through lower financing costs and operational economies of scale.

WDP expects to maintain its Moody’s A3 and Fitch BBB+ credit ratings, ensuring continued access to lower-cost financing at a time when the cost of capital remains a critical competitive factor for real estate companies. At the same time, the company plans to list its shares on Euronext Paris, while maintaining its existing listings in Brussels and Amsterdam, thereby broadening its international investor base and further enhancing share liquidity.

Beyond its financial dimensions, the transaction sends a strong signal to the broader European market. The era of national logistics “champions” appears to be gradually giving way to cross-border platforms with pan-European operations, greater bargaining power, and easier access to capital markets. For investors, the creation of the new group confirms that the logistics sector is entering a new wave of consolidation, in which scale, financial flexibility, and geographic reach will be the decisive factors determining the industry’s winners over the coming decade.

The transaction is expected to close in the first quarter of 2027, subject to shareholder and regulatory approvals. Regardless of the timetable, however, the message to the market is already clear: the battle for leadership in European logistics will no longer be decided within individual countries, but across the continent as a whole.